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Sterling Exchange Rates Gain after Stronger Services Sector Data (James Lovick)
The pound is rallying well this morning having almost touched 1.1750 against the Euro. Although the construction and manufacturing sectors have performed not quite as well as expected this week, the services sector did however make up for this with the Purchasing Managers Index survey which beat forecasts. This appears to be having positive impact on sterling exchange rates.
With no UK economic data releases today focus now looks to an extremely busy calendar on Friday with a raft of data releases. Manufacturing and industrial production figures as well as trade balance data are released Friday morning. The National Institute for Economic and Social research will also release their estimate of UK GDP for the first quarter. This is considered an excellent precursor to the official numbers released later in the month.
UK GDP has proved incredibly resilient over the last nine months although in my view GDP will struggle to perform much more beyond recent growth with the issues that stem from Brexit. A steady or remotely positive figure tomorrow will help support the pound although any deterioration could be a worry and without sounding pessimistic we could just be entering a more challenging period which could see some of the pounds recent gains wiped away.
Meanwhile politics in Britain and also the EU will continue to drive the pound as the discussions start to formalise. Any strong rhetoric from either side is likely to have a substantial impact on the rates.
GBP USD
Those clients who are either buying or selling dollars should be aware that the monthly US non-farm pay roll numbers are released on Friday afternoon. This a major economic releases and will be closely monitored by the markets as it is considered an excellent barometer as to the health of the US economy. The US Federal Reserve are widely expected to raise interest rates another three times this year although any weakening in the economic numbers could see that monetary stance shift. Friday represents a big day on the markets and there could be some good opportunities for buyers and sellers alike.
If you would like further information on sterling exchange rates or any of the major currencies and to discuss how we can assist then please feel free to contact me on 0044 1494 787 478 and ask one of the team for James. Alternatively, I can be emailed directly on [email protected]
Source: http://www.poundsterlingforecast.com/2017/04/06/sterling-exchange-rates-gain-after-stronger-services-sector-data-james-lovick/
